Enfusion AVP Interview Questions and Answers

Derivative is a financial contract whose value is derived from an underlying asset. Spot refers to the current market price of an asset. Option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price. Forward is a contract that obligates the buyer and seller to trade an asset at a predetermined price and date in the future.

• Derivative is a contract whose val...read more

NAV stands for Net Asset Value and is a measure of a fund's value. A hedge fund is an investment fund that uses various strategies to generate high returns.

• NAV is calculated by subtracting a fund's liabilities from its assets

• Hedge funds are typically only available to accredited investors due to their high-risk strategies

• Hedge funds can use leverage, short selling, and derivatives to generate returns

• Some hedge funds sp...read more

Interview questions for Senior Associate position

• For 'Tell Me about yourself', give a brief introduction and highlight your relevant experience and skills

• Research the company and its values before answering 'what do you know about this co?'

• For 'Strength & Weakness', choose strengths that align with the job requirements and weaknesses that you are actively working on improving

• Private Equity is a type of investment where...read more

Hedge funds are alternative investment vehicles that use pooled funds to employ various strategies to generate high returns.

• Hedge funds are typically only available to accredited investors due to their high-risk nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds can invest in a wide range of assets, including stocks, bonds, commodities, and currencies.

• Some common hedge fund strategies include...read more

Private equity is a type of investment where funds are raised from high net worth individuals and institutions to invest in private companies.

• Private equity firms buy companies with the aim of improving their operations and increasing their value before selling them for a profit.

• Private equity investments are typically long-term and involve a high degree of risk.

• Private equity firms may also provide operational and str...read more

The company is a global consulting firm specializing in providing strategic solutions to businesses.

• The company offers a wide range of services including management consulting, technology consulting, and financial advisory.

• It has a strong presence in multiple industries such as healthcare, finance, and technology.

• The company has a global network of offices and clients.

• They have a reputation for delivering high-quality ...read more

Explanation of journal entries for investments

• Investments are recorded at cost or fair value depending on the accounting method used

• Dividends received are recorded as income

• Gains or losses on investments are recorded in the income statement

• If an investment is sold, the cost is removed from the balance sheet and any gain or loss is recorded in the income statement

• If an investment is impaired, the loss is recorded in the...read more

Journal entries for Dividend

• Debit the retained earnings account for the amount of the dividend

• Credit the dividend payable account for the same amount

• When the dividend is paid, debit the dividend payable account and credit the cash account

• Dividend journal entries are important for tracking the distribution of profits to shareholders

Zero coupon bonds do not pay interest but are sold at a discount, offering potential for higher returns but with higher risk.

• Advantages: potential for higher returns due to discount purchase price, no reinvestment risk from periodic interest payments, can be used for long-term financial goals like retirement planning

• Disadvantages: no regular income from interest payments, higher risk due to lack of periodic interest pa...read more